Machhapuchchhre Bank Limited has reported a steady improvement in profit in the second quarter of the fiscal year 2025/26 (FY 2082/83). The bank’s net profit increased by 25.25 percent compared to the same period last year, reaching NPR 1.011 billion in the first six months of the current fiscal year.
According to the unaudited financial statement published by the bank, it earned a net profit of NPR 1.011 billion from mid-July to mid-January. In the corresponding period of the previous fiscal year 2024/25 (FY 2081/82), the bank had posted a net profit of NPR 807.3 million.
During the review period, the bank’s operating profit declined by 10.22 percent to NPR 1.4568 billion, mainly due to a rise in impairment charges. The impairment charge increased to NPR 574.2 million, compared to an operating profit of NPR 1.6227 billion in the same period last year.
Net interest income showed moderate growth, increasing by 4.16 percent to NPR 2.941 billion, up from NPR 2.8236 billion in the corresponding period of the previous fiscal year.
Similarly, the bank recorded strong growth in fee and commission income, which rose by 22.12 percent to NPR 820.799 million during the review period.
As of mid-January, the bank’s distributable profit stood at NPR 436.3 million, with distributable earnings per share of NPR 7.22.
The bank’s earnings per share (EPS) improved by NPR 2.84 to NPR 16.73, while the price-to-earnings (P/E) ratio was recorded at 13.61 times. Net worth per share stood at NPR 161.6.
In terms of capital position, Machhapuchchhre Bank has a paid-up capital of NPR 12.0862 billion. The bank reported a share premium of NPR 30.8 million, retained earnings of NPR 436.3 million, and reserves totaling NPR 6.9818 billion.
By the end of the second quarter, the bank had mobilized deposits amounting to NPR 204.04 billion and extended loans and advances worth NPR 154 billion. Despite pressure on operating profit due to higher impairment charges, the bank’s overall financial performance remained stable, supported by growth in net profit and income streams.
